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Masco Corporation Taylor, Michigan Case Study

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Masco Corporation Taylor, Michigan Case Study
Masco Corporation
Taylor, Michigan
Case Study
WORLD LEADER IN HOME IMPROVEMENT AND BUILDING PRODUCTS VALUES
SUSTAINABLE INNOVATION
Masco Corporation, headquartered in Taylor,
Michigan, is one of the world’s largest
manufacturers of brand-name consumer
products for the home improvement and new
construction markets. The corporation manages
companies in five business segments based on
similarities in products and services; cabinets and
related products, plumbing products, installation
and other services, decorative architectural
products, and other specialty products. Corporate
companies include Merrilat Industries, American
Shower and Bath, Delta Faucet Company,
KraftMaid Cabinetry, Milgard Manufacturing
Inc., Behr Process Corporation, Duraflex,
Damixa, Hansgrohe, Masco Contractor Services,
and Cobra Products, Inc. Masco Corporation’s
sheer size and product lines make it an ideal
candidate for sustainable innovation.
Masco is committed to conducting business in a
manner that protects the quality of the
environment, as well as the health and safety of
employees, by reducing the quantity and toxicity
of the waste generated at its plants. Masco does
this by implementing aggressive policies that
safeguard the health, safety and environments in
which employees live and work, as well as by
ensuring their responsible use of the world’s
natural resources. Masco is a founding member
and participates in the Southeast Michigan
Sustainable Business Forum, which works to
promote sustainability by ensuring “a better
quality of life by addressing the environmental
J e n n i fe r
M . G r a n h o l m , Go v e r n o r
and social ramifications of actions in addition to the
bottom line.” The Forum is a learning organization
that meets to discuss pertinent issues and hear
presentations concerning the practical and strategic
inclusion of sustainability in business practices.
Environmental Management and Sustainability
Masco Corporation recognized the importance of
environmental sustainability by issuing its first
corporate sustainability report for 2003/2004, which
describe Masco’s endeavors to design,
manufacture and distribute products in a safe and
environmentally sound manner.
Information contained in this case study was
extracted from Masco's 2003/2004 Corporate
Sustainability Report.
MICHIGAN DEPARTMENT OF
ENVIRONMENTAL QUALITY
ENVIRONMENTAL SCIENCE AND SERVICES DIVISION
PO BOX 30457
LANSING MI 48909-7957
www.michigan.gov/deq
Environmental Assistance Center
800-662-9278
RECYCLED
PAPER
January 2007  #9862
AUTHORITY: PA 451 OF 1994
TOTAL COPIES: 000
TOTAL COST: $0000
COST PER COPY: $.00
MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY
u
S t eve n
E . C h e s t e r, D i re c t o r
Case Study
facilities utilize Six Sigma, a resource efficiency
metric and methodology, reducing wood waste
by 50%.
Masco’s dedication is demonstrated by its
development and implementation of environmental
management systems (EMS) certified to the ISO
14001 Standard. Currently, 31 facilities have an
ISO 14001 certified Environmental Management
System with several more facilities in the process.
Masco’s environmental management system
addresses waste minimization and effective use
of raw resources, recycling, water conservation,
energy efficiency, products and the environment
and supplier incentives.
Reuse and Recycling
Recycling is an essential component of Masco’s
environmental strategy and manufacturing
processes. Masco strives to reuse material or
use recycled or recovered materials in its
processes where possible, thereby consuming
fewer raw materials and natural resources.
Masco Corporation recycles cardboard, medium
density fiberboard (MDF), particleboard, pallets,
wood shavings and wood dust, clean vinyl scrap,
glass, plastics, brass scrap chips and other scrap
metal. Several Masco companies have also
created their own innovative recycling programs.
For example, Merillat makes use of its wood
waste from cabinet manufacturing by selling
sawdust and shavings for agricultural use,
manufacturing fire logs and incorporating waste
wood products into composite board and decking.
This program yielded a savings of over 22,000
metric tons of wood at a single facility.
Waste Minimization and Raw Resources
Masco recognizes the importance of forest
resource protection and has developed its own
Kitchen Cabinet Global Forest Policy to promote
the manufacture of cabinets using lumber from
forests that are managed in a sustainable manner
certified by the Forest Stewardship Council
(FSC), the Sustainable Forestry Initiative (SFI)
and the Tree Farm Standard. As part of its
environmental strategy, Masco implemented a
Supplier Relationship Management (SRM) system
which helps the company to evaluate raw
material efficiency and
minimize waste streams
throughout the
corporation. Masco
also encourages its
companies to take steps
to improve the resource
efficiency of facilities.
Masco facilities
reduced Volatile
Organic Compound
(VOC) emissions by
32% from 1999 to 2003.
Masco facilities
achieved this reduction by adopting new
technology and streamlining current processes. A
Merillat facility realized a 94% reduction in VOCs
when it replaced solvent-based stain with waterbased stain and installed single-edged grooving
and coating machines. A Duraflex facility made
vinyl saw adjustments that resulted in reduced
waste and increased productivity. The Merillat
Water Conservation
Total water consumption
at 39 of Masco's largest
water using facilities
dropped by 7.6%
between 2001 and 2003.
Masco achieved this
reduction through its
water usage data
collection system. Water
usage is monitored and
compiled by Masco
facilities, helping Masco
to target areas needing
improvement. Facilities use the data to identify
water usage and install devices such as control
valves, closed loop systems and other water
reuse systems to reduce and control water use.
Energy Efficiency
Masco closely monitors energy use and
efficiency. Throughout the corporation, facilities
are encouraged to implement energy saving
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Case Study
processes and technologies that decrease the use
of fossil fuels. Alternatives include the use of
renewable energy and energy from waste.
American Shower and Bath in Lapeer Michigan
realized significant energy savings after installing
energy-efficient vacuum-forming ovens, ondemand vacuum pumps, thermostats and timers
on heating, cooling and air-handling equipment,
and metal halide lighting.
such as employees, suppliers, customers,
shareholders, institutions, governments,
organizations, media and surrounding
communities. Masco promotes team based
programs to improve financial, operational and
people performance and eliminate non-value
added activities from manufacturing and
business process. Outcomes include improved
productivity by 20 %, reducing work-in-process
inventory by 50 %, reducing material handling
steps by 33 %, and implementing safety and
environmental improvements. As a result of the
success of the team based programs, many
operating companies have designated full-time
Continuous Improvement Managers to
coordinate Lean Manufacturing activities.
Masco Corporation funds the Masco
Corporation Foundation, which was established
in 1952 to provide financial and in-kind support
via partnerships with result-oriented
organizations focused primarily on low-income
housing and arts and cultural initiatives in the
southeast Michigan region. Masco has
contributed time and resources to community
development projects, sponsoring Habitat for
Humanity 2003 Detroit's Blitz Build to construct
four homes, and awarded grants to a wide
variety of arts and cultural organizations in
southeast Michigan.
Products and the Environment
Masco Corporation’s many product innovations
and services reflect the corporation’s vested
interest in sustainability. Milgard’s energy-saving
glass, Coat-Max™ low-e, filters solar energy in
the summer and reduces heat loss in the winter.
Behr Process produces a line of low-VOC
paints, which has received widespread
recognition from a national consumer products
magazine. Damixa developed a number of
water- and energy-saving devices including EcoKlik™, which is a patented mechanism that
reduces water usage at full flow and limits hot
water consumption. Masco Contractor Services
developed The Environments for Living®
Program, which provides builders and
homeowners with guidelines for creating
sustainable living environments, which are less
costly to heat and cool.
Supplier Incentives
Masco’s sustainability efforts extend to its supply
chain of more than 13,000 suppliers in 36
countries in 2003. Masco encourages suppliers to
act responsibly and developed a recognition
program to reward leadership, communication,
commitment and cooperation, while achieving
world-class quality, cost reduction, delivery,
service and sustainability. The corporation
encourages its suppliers to comply with corporate
sustainability standards, through programs such
as the Masco Supplier Team Recognition
(MASTAR) program.
Economics
Masco Corporation has developed an effective
economic strategy for long term growth, which
includes enhancing corporate sustainability,
building value for shareholders, continuing to
meet the needs of customers through customer
service initiatives, and improving efficiency and
competitive advantage in the home improvement
and new construction markets. Masco works to
meet these goals while continuing to increase
inventory, sales and dividends. Between 2001
and 2003, Masco increased its inventory by 12%
and sales rose by 37%. In 2003, Masco
increased sales by 19.7% from the previous
year. Shareholders have also benefited from
Masco’s economic prosperity; in 2006, Masco
reported consecutive dividend increases for the
48th year.
Society
Masco has worked extensively to develop the
social component of sustainability, by building
equitable relationships with their stakeholders
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Case Study
Sustainability
Masco’s shift towards sustainability has played
an important role in improving operations
throughout the corporation, its companies and
suppliers. According to Masco, “Sustainability is
the concept that guides Masco in measuring and
improving upon our economic, social and
environmental performance with the aim of
ensuring that our business activities do not
compromise the well-being of society in the longterm”. Through the use of triple bottom line
metrics, Masco Corporation’s continued success
has shown that implementing sustainable
practices can increase sales and profits
throughout the company, while improving product
quality, services and relationships with
shareholders.
Contacts:
MASCO Corporation
21001 Van Born Road
Taylor, MI 48180
[email protected]
Ms. C. J. Panagiotides
Michigan Department of Environmental Quality
586-753-3725
[email protected]
The Michigan Department of Environmental Quality (MDEQ) will not discriminate against any individual or group
on the basis of race, sex, religion, age, national origin, color, marital status, disability, or political beliefs. Questions or
concerns should be directed to the MDEQ Office of Human Resources, PO Box 30473, Lansing, MI 48909.
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